How Can Cryptocurrency Hold Its Value?
I am concerned with the current cryptocurrency market. In just one month, the price jumped from $2,000 to $4,000 per BTC (Bitcoin).
Can cryptocurrency hold its value? Like most of the things in this world, anything without substance could deflate like a balloon. Cryptocurrency needs to find the substances to hold its value instead of depending on speculation.
Cryptocurrency is a type of currency, and like any currency, its value depends on what it can exchange into in the market, or its market trading value. To hold its market trading value, it needs to show that it does worth that value. That’s the reason why Federal Reserve holds 8,000 Tonnes of Gold, to back its printed and other types of currencies in the circulation. That’s why we have P/E Ratio (Price-Earnings Ratio) in the stock market, to evaluate the value of a stock.
Cryptocurrency needs to have its utility and substances to hold its value.
Ethereum offers the perfect foundation to build utility for cryptocurrency. Using smart contract, a board range of utility applications can be embedded into the blockchain framework, offering a wide range of usages for the coins, connecting cryptocurrency to the rest of the world.
What’s the best substance that holds value? Is it gold or diamond? What’s more precious and valuable than diamond or gold?
We are all human beings; we care about ourselves.
It takes generations to give birth to a child. It takes years for a child to grow. When your baby is born, when you hold that tiny pinkish bundle of flesh in your hands, you gasp at how light it weighs and you realize how precious and fragile life is.
Human is far more precious and expensive than gold, diamond or other things in this world. As long as human race continues, our lives have value. Each generation holds the value of all previous human generations.
Human accumulates and increase its value over time.
Human asset, human creativity, innovation and ideas exist in an intangible way, only become visible, tangible and transferable when these intangible assets are instilled and transformed into tangible goods. Before a person accumulates enough knowledge and skills, and before his or her product finds its product-market-fit, there is little-to-none liquidity of his or her tangible and intangible assets.
On the other hand, cryptocurrency is easy transferrable. Using blockchain, the transfer record is highly visible and tamperproof.
It is an perfect match using cryptocurrency to fund human assets. It helps cryptocurrency holding its value over time. At the same time, it helps the creative product makers live, accumulate enough knowledge and expertise, and find the product-market-fit for their products.
LookRev is the first blockchain-based marketplace for creative products. Using block chain and smart contract as infrastructure, it dynamically generates an ongoing smart contract based proof-of-work product distribution chain, creating a trust-worthy and mutually beneficial chain of services for product creation, customization, and distribution.
LookRev = VR + Blockchain + Business
It helps creative product makers find the product-market-fit for his or her custom products. It helps shoppers discover the creative products they like, and helps them preorder and buy custom products from the creative product makers.
LookRev has just announced its ICO (Initial Coin Offering) coming up on August 30, 2017. With six years of development, LookRev has more than a dozen Android, Apple, and web applications in the market. It has more than 400,000 organic downloads, and more than 3 million usages, offering many benefits to consumers and product makers. LookRev (LOK) tokens will bring many solid utilities and benefits to the ecosystem.
Using LookRev’s highly interactive VR (Visual Reality) technology, you can select and outfit various unique products in your personal environment. For example, you can pick out a wall art you like and virtually put it onto your living room wall to visualize how it looks like in your home before you make the purchase. Best of all, you can put in custom orders with the creative product makers who accept custom orders, ask them to make products based on your personal preferences, and custom order these truly one-of-a-kind products.
Who knows, may be you will discover the next Van Gogh, or own one of his early masterpiece before he becomes famous. Does this hold the value of your bitcoin? Let me know your answer.
Disclaimer: This article is based on personal view. The purpose of this article is to offer a difference perspective, contribute to the cryptocurrency community and human society.